The central government on Wednesday agreed to increase dearness allowance and dearness relief. This will benefit the central government employees and pensioners. From 17 percent to 28 percent. According to sources the DA and DR hike has been hampered due to the financial burden of the Corona crisis last year. The Union Cabinet has now decided to increase it. This decision will benefit lakhs of central government employees and pensioners. They had been waiting for this climb for a very long time.
Several media outlets have reported that Dearness Allowance and Dearness Relief will become normal by July as per the 7th Pay Commission recommendation. The benefit of this DA and DR hike is effective from July 1, 2021. The present decision is estimated to cost the government Rs 34,400 crore.
As per the previous reports, the DA hike may take some more time as there are many permits to be obtained. If so, late payments will be made to employees and pensioners. Those arrears will be effective from July 1, 2021. At least three DA installments were pending before the cabinet approval. Two last year and one this year (1.1.2020, 1.7.2020 and 1.1.2021). An 11 percent increase in DA is allowed by adding a three-episode balance.
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(7th Pay Commission: Approved hike in DA and DR of Central Government employees and pensioners from 17% to 28% from Central Government.)